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2015 (11) TMI 1267 - ITAT MUMBAI

2015 (11) TMI 1267 - ITAT MUMBAI - TMI - Gifts received by the assessee by way of India Resurgent bonds - Held that:- The assessee himself has admitted before the assessing officer that the alleged donors are third parties. When the donors are unrelated third parties, it would be hard to believe that they have given gifts to the assessee, who is not known to any of the donors. In that kind of situation, we are unable to comprehend as to how the donors could give the gifts out of “natural love an .....

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m of the assessee requires verification, since it is made for the first time before us. Accordingly, we modify the order of Ld CIT(A) and restore the matter relating to the gifts received from the above said two parties to the file of the AO with the direction to examine the claim of the assessee afresh. The order of Ld CIT(A) with regard to the remaining amounts is confirmed. - Decided partly in favour of assessee for statistical purposes.

Computation of Long term capital gains on sa .....

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, since the spouse of the assessee has claimed to have died intestate. In that case, the MOU entered between the assessee and her daughters have to be examined and a proper decision is required to be taken. In this regard, the Ld A.R invited our attention to the provision of Hindu Succession Act. We notice that the assessing officer has simply rejected the claim of the assessee without examining the rights of the daughters of the assessee over the properties of the assessee’s spouse. Hence, in o .....

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in Chennai. Before Ld CIT(A) also, the assessee did not furnish any other evidence and hence the first appellate authority confirmed the rejection of the claim. Before us also, no evidence was furnished to prove the claim of the assessee that the expenses were incurred in connection with the transfer of flats located in Chennai. Further, the assessee has also failed to furnish any explanation with regard to the difference in the expenditure claim. Under these set of facts, we are of the view tha .....

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ould be entitled to indexation benefit from FY 1997-98 merely on the basis of sale agreement. Hence, we do not find any infirmity in the decision of Ld CIT(A) on this issue.- Decided against assessee.

Assessment of gifts received by the assessee by way of India millennium Deposits - Held that:- Assessee failed to furnish any explanation with regard to the occasion/reason which prompted the donor to give gifts to the assessee. We notice that the facts prevailing in the instant year in .....

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amount as interest income of the assessee confirmed by CIT(A) - Held that:- If the assessee had already offered the different amount in the earlier year, the same cannot be assessed again in the current year, since double assessment of same income is not permissible. However, the claim of the assessee requires verification. Accordingly, we set aside the order of Ld CIT(A) on this issue and restore the same to the file of the AO with the direction to examine the claim of the assessee and take ap .....

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ere heard together and hence they are being disposed of by this common order, for the sake of convenience. 2. Both the appeals filed by the assessee are barred by limitation. The assessee has moved a petition explaining the reasons for the delay in filing the present appeals. We heard the parties on this preliminary issue. We notice from the affidavits filed by the assessee along with evidences that the assessee was suffering from various kind of health problems, which claim is supported by the .....

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has claimed to have received India Resurgent Bonds as gits from various persons and their equivalent rupee value was credited in the capital account. The assessee merely submitted copies of Bonds along with copies of transfer forms to show that the bonds have been transferred to the assessee s name. Before the AO, the assessee could not furnish confirmation letters from the concerned donors. Since the assessee did not furnish evidences to prove the identity and credit worthiness of the donors an .....

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t that the said bonds have been transferred to the name of the assessee upon the signing of the transfer deeds by the concerned donors. He further submitted that the donors had subscribed the bonds in the year 1998 and they have been given as gifts to the assessee in the year 2002. He submitted that the very fact that the donors have held the bonds since 1998 would show that they were having the capacity to subscribe to the bonds and the same proves their credit worthiness. He further submitted .....

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e law in support of his contentions:- (a) ITO Vs. Mahendra P Mehta (2011)(9 taxmann.com 34) (Mum Trib) (b) CIT Vs. Shri Gautam Balasaheb Ladkar & Others (ITA No.1438 of 2013 & others dated 24.08.2015)(Bom HC) 5. On the contrary, the Ld D.R submitted that the assessee could not prove his relationship with the donors, the occasion for making gifts. Further, the assessee could not obtain any confirmation letters from the concerned donors and, in fact, has expressed his inability to obtain t .....

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d holders have stated that they have gifted the bonds to the assessee. Hence, the assessee is placing heavy reliance on these documents to contend that the gifts were genuine. 7. However we notice from the assessment order that the assessee has admitted before the assessing officer that the donors were third parties and hence it would not be possible for him to collect the details that were called for by the assessing officer. There should not be any doubt that the Gifts are given out of natural .....

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and the concerned donors and also failed to furnish any explanation with regard to the reason/occasion which prompted the donor to give gifts to the assessee. In fact, the assessee himself has admitted before the assessing officer that the alleged donors are third parties. When the donors are unrelated third parties, it would be hard to believe that they have given gifts to the assessee, who is not known to any of the donors. In that kind of situation, we are unable to comprehend as to how the .....

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(supra), the donors have given affidavits confirming the fact of giving of gifts and in the case of Mahendra P Mehta (supra), the assessee therein received gifts from his brother in law (wife s brother). However in the instant case, the assessee has not received gifts from close relatives, but he has received the alleged gifts from unrelated third parties. Further, the assessee himself has admitted that he could not obtain confirmation letters from the concerned donors. Under these set of facts .....

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tter relating to the gifts received from the above said two parties to the file of the AO with the direction to examine the claim of the assessee afresh. The order of Ld CIT(A) with regard to the remaining amounts is confirmed. 8. We shall now take up the appeal filed for AY 2004-05, wherein following issues are urged before us:- (a) Computation of capital gains on sale of flats by rejecting the claim of purcahse FY 1996-97 and also rejecting the claim for deduction of (i) the amount payable to .....

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sale of the properties, the assessee and his three daughters entered into a Memorandum of Understanding (MOU), as per which the daughters agreed to take 18% of the sale consideration towards their right over the share of their mother in the properties. Accordingly, the assessee deducted 18% of the sale consideration from the total sale consideration and computed capital gain upon the remaining 82%. The AO did not agree with the submissions of the assessee for the reason that the capital gains is .....

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her the spouse of the assessee has also contributed her own money at the time of purchase of properties or her name was included for name sake only. If the spouse of the assessee had contributed her own money, then the daughters shall have right over her properties, since the spouse of the assessee has claimed to have died intestate. In that case, the MOU entered between the assessee and her daughters have to be examined and a proper decision is required to be taken. In this regard, the Ld A.R i .....

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elates to the rejection of claim for deduction of expenses incurred in respect of two flats located in Chennai. The AO rejected the claim, since there was difference in the amount of expenses claimed in the original computation of income and in the revised computation of income. Further, the assessee has also failed to substantiate that the expenses were incurred in connection with the transfer of flats located in Chennai. Before Ld CIT(A) also, the assessee did not furnish any other evidence an .....

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he next issue relates to the claim of date of purchase of flat located at Punit Tower, Mumbai. The assessee claimed that he has purchased this flat on 19-12-1997 and accordingly claimed indexation benefit from FY 1997-98. However, the AO noticed that the possession was obtained only on 03-09-1998 and accordingly allowed indexation benefit from FY 1998-99. The Ld CIT(A) upheld the view of the AO and hence the assessee is contesting this decision of Ld CIT(A). Before us, the Ld A.R placed his reli .....

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ssue. 13. The next issue relates to the assessment of gifts received by the assessee by way of India millennium Deposits. Since the assessee failed to furnish the details that were called for by the AO, the assessing officer assessed the gifts as income of the assessee. The Ld CIT(A) also confirmed the same. In the immediately preceding year, the assessee had received gifts by way of India Resurgent bonds and the same was assessed as his income. While adjudicating the said issue, we have noticed .....

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